SG Market (12 Jun 17)

MARKET OVERVIEW
- The market may resume its upclimb after last Thu's trio of major risk events passed with little impact, although gains may be capped ahead of FOMC meeting on 13-14 Jun.
- Technically, the STI has broken above its 3,250 resistance and appears headed towards May peak at 3,275, with immediate support at at 3,228.

POSITIVE NEWS
*Moya Holdings
- Acquiring Indonesian water infrastructure developer and operator Acuatico for US$245.2m (9.5x FY16 pretax profit).
- Significant deal expected to boost production capacity and asset base.
- Pro forma FY16 EPS is expected to jump from 0.11¢ to 0.65¢.
- Post deal, the group will flip from net cash position of $58.5m to net debt of $302.9m, with 2.5x net gearing.

*The Trendlines
- Confirmed that the medical device product developed by its "Most Valuable Portfolio Company" remains on track for launch in 2018.
- In a sale agreement signed with third party in 2014, Trendlines will receive cash payment at closing, milestone payments and royalties from future sales of the product.
- Acquirer is in the process of establishing a high-volume manufacturing facility for production of the product.

*Eindec
- Awarded $3m worth of new contracts in Singapore and Malaysia.
- Comprises three major contracts for Clean Room Equipment in Malaysia and a contract to supply HVAC equipment for a commercial tower in CBD of Singapore.

NEGATIVE NEWS
*Ezion
- Proposed capitalisation of US$5.9m shareholder loan to Ausgroup via subscription of 140.8m new AusGroup shares at $0.058 each.
- Post debt restructuring, Ezion will own 20% of AusGroup, up from 17.83%.
- The loan settlement will have little impact on EPS and NTA of the group.

*XMH
- Expects to post a net loss for 4QFY4/17 and FY17, mainly from impairments in intangible assets.

*MS Holdings
- Expects to report a net loss for FY17 due to challenging business conditions and competitiveness in crane rental markets.

NEUTRAL NEWS
*Figtree
- Forms 85:15 JV with local partner in Chongqing, China to undertake design and EPC services to the construction industry in Chongqing.